Apple has kept an illegal monopoly over smartphones in US, Justice Department says in antitrust suit
The lawsuit, filed in federal court, alleges that Apple has monopoly power in the smartphone market.
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Note this on the allegations of "Big Tech" forming a monopoly. at the core of the business model.
WASHINGTON, March 21 (Reuters) - The U.S. Department of Justice and 15 states on Thursday sued Apple (AAPL.O), opens new tab, alleging it used the powerful demand for its iPhone and other products to drive up prices for its services and hurt smaller rivals, the latest move in a U.S. crackdown on Big Tech.
Apple joins corporate rivals sued by U.S. regulators, including Alphabet's (GOOGL.O), opens new tab Google, Meta Platforms (META.O), opens new tab and Amazon.com (AMZN.O), opens new tab across the administrations of both former President Donald Trump and President Joe Biden.
"Consumers should not have to pay higher prices because companies violate the antitrust laws," Attorney General Merrick Garland said in a statement. "If left unchallenged, Apple will only continue to strengthen its smartphone monopoly."
Dating back to its time as a marginal player in the personal computer market, Apple's business model has long been based on charging users a premium for technology products where Apple dictates nearly all of the details of how the device works and can be used. The Justice Department seeks to unwind that business model by forcing Apple to offer users more choices around how apps can tap into the hardware that Apple designs.